[Natalierose]

Hey guys,

Lots of people talk about starting their own firm….it seems like a careful balancing act. How did you guys go about this with launching your own firm and building clients while still being employed.

Can’t just jump out of my 9-5…well…9-9 right now…decent paying job until I have a decent client base to replace it.

Any stories, input, ect appreciated ^_^

REG- Passed
BEC- Passed
AUD -Failed - Retake in October
FAR- Scheduled 8/1/2016

[Anonymous]

Best way would be to purchase another firm. You could do this with a loan or with your own capital if you have it. There are brokers who have listings of accounting firms that are being sold, but going through a broker tends to add some additional costs (though it would be difficult to find these businesses for sale otherwise).

By buying a business, you would essentially be purchasing the assets and liabilities of the company, including their list of clients. In an ideal situation, the previous owner would be willing to help with the transition, but that is not always the case.

To my understanding, tax services for individuals are not in high demand as they once were unless you are experienced with dealing with the IRS and the more complex tax-related issues.

The best option for starting your own accounting firm if you are a CPA in my opinion is to provide bookkeeping or assurance related services. Once you build some experience and a reputation, you could add things like consulting and CFO outsourcing services.

[Natalierose]

Oh- I would rather die than do bookkeeping or assurance services. haha I'm pretty die hard with tax.

I don't have interest in buying a firm because I have a specific client base I'm targeting and already building a client base in. (real estate investors and direct sales)

I was/am involved in both industries so it's drawing a ton of clients.

I'm just wondering how I basically don't get busted essentially moonlighting with my own firm. Is there a tactful way to go about this?

REG- Passed
BEC- Passed
AUD -Failed - Retake in October
FAR- Scheduled 8/1/2016

[Anonymous]

I'm interested to learn as well. I'm not familiar enough with what tax professionals do from day to day if they aren't preparing tax returns 😛

[Son]

Natalierose, wouldn't you be violating your employment contract, possibly internal guidelines and ethics rules? My contract very explicitly stated that I cannot provide tax services that my current firm provides on the side. If you work for a small CPA firm the rules might be more lax, but I'd consider your employer's potential reaction if they learn about your side business. Brickell gave a sound advise – you can buy someone's practice and start there.

AUD - passed
REG - passed
BEC - passed
FAR - passed

[SeattleCPA]

I've got a blog post this week you should find interesting… it's about the profitability of small CPA firms:

Small CPA Firm Profitability

BTW, I don't think you can moonlight if you're working with another CPA firm. (Too complicated, unless that's the deal from the get go.)

I do think you can bootstrap…

Doing per diem work for another firm is a tried and true way to generate additional revenue while you're ramping up.

Many small CPA firms probably aren't worth buying (see that blog post for details) and so you'd want to be really careful if you tried that route.

[NYSCPA]

I work in public accounting and I have my own Tax and Accounting firm. I am fortunate enough that my full-time employer does not require me to work weekends. This allows me to operate my own business on the weekends as well as late nights.

I live in a condominium complex. So I created ads and posted them in the buildings and have gotten clients this way. Word of mouth from friends and family also helps to develop a client base. I also do tax prep and auditing work for a former employer. I joined my State's CPA Soceity and have had other professionals (CFPs, attorneys, etc.) refer clients to me as well.

It is definitely possible to start a business of your own. It can also be highly profitable as your only real overhead is your time and initial equipment investments (computer, software, etc.)

I would definitely check with your employer first. From day 1 (during my interview) I told my boss that I wanted to start my own firm. I gave an honest answer to the “Where do you see yourself in 5yrs question”. My boss basically said “to advance in this business you have to bring in clients” which I agree with and understand. However, the clientele I am targeting are vastly different from theirs so there is no conflict. Should I ever catch a big fish in the music industry ( the focus of my employer) I will gladly refer them to my employer rather than take them on myself. I've also offered clients to my employer as a way of showing I'm interested in building a book of business for them, but the potential billings weren't enough for them so they said: “you can keep them and good luck”.

[Tncincy]

I have run my own tax/bookkeeping business for 25 years…the industry has changed ALOT, so I am deciding as well should I convert to a CPA firm and continue doing what I am doing? The whole point of being a CPA is the letters of course, but there are so many things I cannot do because I do not have the letters, so where can I get the information to build from where I am? I am 51 so I am not sure I can join a firm at this point (just my thinking), but I do want to remain in Accounting. How can I go beyond individual and small business tax? I don't need the letters to teach so…..This is a good conversation anyway, I hope it keeps going. Websites, books, what ever information is available.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Tncincy]

Just found some great stuff referred by SeattleCPA….still open for suggestions. First things first….PASS the test!….Back to study.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Ryan – Just Another Dollar]

I have also wondered about this. I'll likely start with a few clients and expand with friends/family referrals. I read my employment contract pretty thoroughly and believe that as long as my personal clients would not fit the profile of my firm I.E. high-net-worth or specific-industry I'm ok. If I provide tax services competing with my firm I would be required to share 50% of the fee revenue.

B - 88 (2/16)
A - 84 (4/16)
R - 73 (6/16), 82(7/16)
F - 67 (1/16), 84(4/16)

Ethics - 93

Roger course & Ninja MCQ - HiYa!

[Author]

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